I recently read an article on Yahoo Finance on Negative List in which 17 services have been included in the negative list.
One of these items (Item no. 13) relates to Rent on Residential Property, wherein those staying in rented premises are exempt from Service Tax on the Rent paid.
However, as per the revised Negative List published, under Notification no. 25, this negative list has been expanded to 39 services.
Surprisingly, this list does not contain Rent on Residential Properties.
Correspondingly, what is the tax treatment?
Is Rent for Residential properties liable for Service Tax?
If so, why has the Government changed it's earlier position on Taxability of Residential Property?
CAclubindia
